S&P: Chiquita Brands unchanged

Standard & Poor's said its ratings and outlook on Chiquita Brands International Inc. (B-/negative) remain unchanged following the company's announcement that it is reviewing its capital structure.

Chiquita may amend or refinance its senior secured credit facility and may issue a convertible note offering of at least $125 million to repay a portion of the existing term loan C, the agency said, noting that $326 million was outstanding at Dec. 31.

In connection with the proposed refinancing, Chiquita is seeking consent from holders of the $250 million 7½% senior notes due 2014 to amend the terms of the indenture, the agency added, noting that these actions are intended to reduce the company's interest expense, extend maturities and provide additional covenant flexibility.

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